Logistics study: Labour force potential is becoming an important location factor

The importance of location factors for logistics properties is changing. Whereas a few years ago, the cost of space and proximity to motorway connections were decisive factors, the focus is now shifting to available labour potential. This was the result of a study conducted by the working group for Supply Chain Services at the Fraunhofer Institute for Integrated Circuits IIS on behalf of Union Investment. The study analysed the location factor workforce and the structures, potential and fields of action for logistics real estate resulting from the change in importance.

"Competition for qualified employees in logistics is becoming increasingly fierce and a new generation is entering the labour market. In addition to an attractive salary package, employees today also demand appreciation in the form of a modern working environment," says Maximilian von Medem, Investment Manager Logistics DACH at Union Investment.

According to the study, logistics properties can also contribute to making the activities carried out there more attractive at the building and location level if they are seen as workplaces for people and not just as storage or transshipment centres for goods.

According to the study, progressive automation can be an alternative to alleviating the shortage of skilled labour in handling and warehouse logistics. However, it will only be able to alleviate the labour shortage in relatively simple, repetitive and highly standardised picking, packing and commissioning processes. It will also increase the need for more highly qualified personnel. This is because the technical maintenance, control and improvement of automated systems brings with it new job profiles in operational logistics. "An increased quality of stay will also be a decisive factor in the choice of workplace for these skilled workers," says Uwe Veres-Homm, Supply Chain Services working group at the Fraunhofer Institute for Integrated Circuits IIS.

Study by the Fraunhofer Institute on behalf of Union Investment
The study can be downloaded at the following link:

https://realestate.union-investment.com/en_GB/media-center/studies-and-surveys/market-study-logistics